Question 1

The efficiency of an operations system is measured in terms of its:

Accepted Answer

A)  Effective capacity against designed capacity 
B)  Actual output against designed capacity 
C)  Designed capacity against nominal capacity 
D)  Effective capacity against scheduled throughput 
E)  Actual output against effective capacity 
A)  Effective capacity against designed capacity 
B)  Actual output against designed capacity 
C)  Designed capacity against nominal capacity 
D)  Effective capacity against scheduled throughput 
E)  Actual output against effective capacity E

Question 2

Which of the following is NOT a requirement of a demand forecast?

Accepted Answer

A)  It gives an indication of relative uncertainty. 
B)  It is as accurate as possible. 
C)  It shows the impact of failure to deliver on customer satisfaction. 
D)  It is expressed in terms that are useful for capacity planning and control. 
A)  It gives an indication of relative uncertainty. 
B)  It is as accurate as possible. 
C)  It shows the impact of failure to deliver on customer satisfaction. 
D)  It is expressed in terms that are useful for capacity planning and control. C

Question 3

Which of the following is an output measure of capacity?

Accepted Answer

A)  Number of passengers transported by an airline each week 
B)  Beds available in a hospital 
C)  Volume of fermentation tanks for a brewery 
D)  Generator size for an electricity company 
A)  Number of passengers transported by an airline each week 
B)  Beds available in a hospital 
C)  Volume of fermentation tanks for a brewery 
D)  Generator size for an electricity company A

Question 4

What is meant by yield management?

Accepted Answer

A)  The maximisation of profit through capacity, demand and pricing policies. 
B)  Encouraging growth in demand during periods of low demand and restraining it during periods of high demand. 
C)  Expanding the operation at periods of high demand in order to yield more sales revenue. 
D)  Overbooking capacity to ensure that all capacity is filled at all times. 
A)  The maximisation of profit through capacity, demand and pricing policies. 
B)  Encouraging growth in demand during periods of low demand and restraining it during periods of high demand. 
C)  Expanding the operation at periods of high demand in order to yield more sales revenue. 
D)  Overbooking capacity to ensure that all capacity is filled at all times.

Question 5

Attempting to change demand to fit available capacity is known as:

Accepted Answer

A)  Level capacity plan 
B)  Chase demand plan 
C)  Demand management 
A)  Level capacity plan 
B)  Chase demand plan 
C)  Demand management

Question 6

The idea of a fluctuating workforce that matches demand can be regarded as unethical.

Accepted Answer

A) True 
 B)False

Question 7

The most favourable solution to non-uniform demand is probably to:

Accepted Answer

A)  Always maintain excess capacity 
B)  Hire or lay off workers as required 
C)  Build up sufficient inventory to meet heavy demand 
D)  Employ a mixed capacity management plan 
E)  Use overtime or part-time workers 
A)  Always maintain excess capacity 
B)  Hire or lay off workers as required 
C)  Build up sufficient inventory to meet heavy demand 
D)  Employ a mixed capacity management plan 
E)  Use overtime or part-time workers

Question 8

The capacity that technical designers have in mind when they commission an operation is called:

Accepted Answer

A)  Optimum capacity 
B)  Designed capacity 
C)  No-limits capacity 
D)  Strategic capacity 
A)  Optimum capacity 
B)  Designed capacity 
C)  No-limits capacity 
D)  Strategic capacity

Question 9

Which of the following is NOT a measure of utilisation?

Accepted Answer

A)  Load factor for aircraft. 
B)  Number of hours available for production. 
C)  Uptime in a factory. 
D)  Room occupancy level in hotels. 
A)  Load factor for aircraft. 
B)  Number of hours available for production. 
C)  Uptime in a factory. 
D)  Room occupancy level in hotels.

Question 10

Which of the following is NOT a measure of utilisation?

Accepted Answer

A)  Uptime in a factory 
B)  Room occupancy level in hotels 
C)  Load factor for aircraft 
D)  Number of hours available for production 
A)  Uptime in a factory 
B)  Room occupancy level in hotels 
C)  Load factor for aircraft 
D)  Number of hours available for production

Question 11

Very high under-utilisation can make level capacity plans prohibitively expensive.

Accepted Answer

A) True 
 B)False

Question 12

The most obvious way to change demand is through:

Accepted Answer

A)  Promotion 
B)  Dependability 
C)  Price 
D)  Delivery 
A)  Promotion 
B)  Dependability 
C)  Price 
D)  Delivery

Question 13

An organisation that produces goods that cannot be stored is more likely to adopt which capacity plan?

Accepted Answer

A)  Level capacity plan 
B)  Chase demand plan 
C)  Demand management 
A)  Level capacity plan 
B)  Chase demand plan 
C)  Demand management

Question 14

What measure is an increasingly popular method of judging the effectiveness of operations equipment?

Accepted Answer

A)  Fishbone analysis 
B)  Total production method 
C)  Operational effectiveness measure 
D)  Overall equipment effectiveness measure 
A)  Fishbone analysis 
B)  Total production method 
C)  Operational effectiveness measure 
D)  Overall equipment effectiveness measure

Question 15

Which of the following measures is not part of determining the overall equipment effectiveness (OEE) of an individual piece of equipment.

Accepted Answer

A)  Quality of the product 
B)  Speed or throughput rate 
C)  Time it is available to operate 
D)  Cost of the equipment 
A)  Quality of the product 
B)  Speed or throughput rate 
C)  Time it is available to operate 
D)  Cost of the equipment

Question 16

In periods of high demand, an operation might buy capacity from other organisations. This is called:

Accepted Answer

A)  Third party logistics 
B)  Subcontracting 
C)  Annualised hours 
D)  Value creation 
A)  Third party logistics 
B)  Subcontracting 
C)  Annualised hours 
D)  Value creation

Question 17

Adjusting capacity to reflect the fluctuations in demand is known as:

Accepted Answer

A)  Level capacity plan 
B)  Chase demand plan 
C)  Demand management 
A)  Level capacity plan 
B)  Chase demand plan 
C)  Demand management

Question 18

Capacity is usually expressed in terms of:

Accepted Answer

A)  The design life of an operations process 
B)  Potential output from an operations system 
C)  Man-hours available without overtime 
D)  A production forecast 
E)  The Master Production Schedule 
A)  The design life of an operations process 
B)  Potential output from an operations system 
C)  Man-hours available without overtime 
D)  A production forecast 
E)  The Master Production Schedule

Question 19

What type of capacity plan ignores fluctuations and keeps activity constant?

Accepted Answer

A)  Aggregated capacity plan 
B)  Level capacity plan 
C)  Demand management 
D)  Chase demand plan 
A)  Aggregated capacity plan 
B)  Level capacity plan 
C)  Demand management 
D)  Chase demand plan

Question 20

Is the sales floor area in a retail outlet an input or output capacity measure.

Accepted Answer

A)  Input measure of capacity 
B)  Output measure of capacity 
A)  Input measure of capacity 
B)  Output measure of capacity

Exam 11: Supply Chain Management

The efficiency of an operations system is measured in terms of its:

Which of the following is NOT a requirement of a demand forecast?

Which of the following is an output measure of capacity?

What is meant by yield management?

Attempting to change demand to fit available capacity is known as:

The idea of a fluctuating workforce that matches demand can be regarded as unethical.

The most favourable solution to non-uniform demand is probably to:

The capacity that technical designers have in mind when they commission an operation is called:

Which of the following is NOT a measure of utilisation?

Which of the following is NOT a measure of utilisation?

Very high under-utilisation can make level capacity plans prohibitively expensive.

The most obvious way to change demand is through:

An organisation that produces goods that cannot be stored is more likely to adopt which capacity plan?

What measure is an increasingly popular method of judging the effectiveness of operations equipment?

Which of the following measures is not part of determining the overall equipment effectiveness (OEE) of an individual piece of equipment.

In periods of high demand, an operation might buy capacity from other organisations. This is called:

Adjusting capacity to reflect the fluctuations in demand is known as:

Capacity is usually expressed in terms of:

What type of capacity plan ignores fluctuations and keeps activity constant?

Is the sales floor area in a retail outlet an input or output capacity measure.

Introduction to Operations Management

Competitiveness, Strategic Planning, and Productivity

Demand Forecasting

Product Design

Strategic Capacity Planning

Process Design and Facility Layout

Workjob Design

Location Planning and Analysis

Management of Quality

Statistical Quality Control

Inventory Management

Aggregate Operations Planning and Master Scheduling

Material Requirements Planning and Enterprise Resource Planning

Just-In-Time and Lean Production

Job and Staff Scheduling

Project Management

Waiting-Line Analysis

Answers to Selected Problems

Tables

Working With the Normal Distribution

Filters